In a report published Monday, Credit Suisse Group initiated coverage on SolarCity Corp. (NASDAQ: SCTY) with an Outperform rating and $22.00 price target.

Credit Suisse noted, “We are initiating on SCTY with an Outperform rating and a $22 target price. SolarCity is a rapidly growing energy service provider in the distributed solar generation market. Lower panel prices, rising retail electricity prices, low interest rates, and stable federal incentives have enabled a relatively new class of companies such as SCTY to become viable. Even excluding ~$0.60/Watt in post-contract value, we estimate SCTY to create an attractive ~$1.09/Watt of NPV on new bookings in 2013-15. SCTY's cumulative NPV created should exceed its current market capitalization as early as late 2014.”